Is Berlusconi the saviour of Italy’s gambling industry?

Silvio Berlusconi, the scandalous former prime minister of Italy, could become an unlikely saviour of the country’s gambling industry.

The current Italian President Sergio Mattarella has rejected the proposal by the new coalition governments on the appointment of a new finance minister. After this, the Prime Minister-designate Giuseppe Conte resigned, which could lead to a new election in a few months.

The coalition of the Euro-phobic Five Star Movement (MS5) and the right-wing League party was formed earlier this month, and it released a document outlining their plans for governing Italy, which proposed two serious proposals that could prove a hindrance for the existence of the gambling industry: “the elimination of gambling machines (slot machines, video lottery terminals)” and “an absolute ban on [gambling] advertising and sponsorships.”

Industry reaction to the coalition document was a mix of incredulity and alarm, and reaction to the coalition’s sudden demise has been a mix of relief and uncertainty as to what comes next.

Incredibly, the coalition’s demise may resurrect Berlusconi’s once-dead political fortunes. The “Bunga Bunga” icon’s attempt to run in the March election was prevented by his 2012 tax fraud conviction, but a Milan court ruled this month – before Monday’s demise of the MS5/League coalition – that he could participate in future elections.

The support of Berlusconi’s Forza Italia party could help tip the balance in favour of a new coalition of the League and Brothers of Italy parties in the next election, and Berlusconi would be able to exact concessions to ensure his support. And that likely spells relief for Italy’s gambling industry, at least on the advertising front.

Berlusconi is Italy’s media baron, controlling three of the seven national television channels, and Italy’s gambling advertising market is estimated at around €200m per year. Last week, Italian media outlets claimed Berlusconi went on a tirade after learning of the coalition’s proposed gambling ad ban, presumably because it would hit him square in his pocketbook.

Source: CalvinAyre.com